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Question
How much must you deposit today into the following accounts in order to have a college fund in years? Suppose that no additional deposits are made. An APR of , compounded annually
Solution
VerifiedAnswered 2 years ago
Answered 2 years ago
Step 1
1 of 4The goal is to determine the starting principal if the accumulated balance is for years with an annual percentage rate of compounded annually.
To determine the starting principal, apply this formula:
where is the starting principal, is the accumulated balance, is the annual percentage rate (as a decimal), is the number of compounding periods per year, and is the number of years.
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